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June 24, 2017

Stocata S&P 500 Analysis: June 24, 2017.

Last week I wrote: "Technically we can see the index far away from all averages. The index reached the nearest 161.8% Fibonacci target coming close to the upper side of the up moving pitchfork. We should expect some pullback the coming weeks. The correction now may just be a horizontal move. But I think a correction towards 2400 and the 50-day average seems to be the minimum. My advice remains to swing trade short term. Many things are happening in the world these days that may change everything from one day to the other. Do not put everything at risk! Please read my comments on the weekly chart and monthly chart for more information regarding the longer term view."

Monday started with a gap up closing the day with a new higher high. The gap was closed on Wednesday and some recovery on Friday closed the week a fraction higher. I can only repeat: the index reached the nearest 161.8% Fibonacci target coming once more close to the upper side of the up moving pitchfork. There is a negative divergence between the index and both the Stochastic RSI and the price stochastic. We should expect some pullback the coming weeks. This correction may just be a horizontal move. But I think a correction towards 2400 and the 50-day average seems to be the minimum. My advice is to swing trade short term only. Please read my comments on the weekly chart and monthly chart for more information regarding the longer term view.